DEPARTMENT OF LOGISTICS
UNIVERSITY OF STELLENBOSCH
POSTGRADUATE INFORMATION:
TRANSPORT ECONOMICS
2015
Tel: 021 808 2249
Fax: 021 808 3406
E-mail: [email protected]
Website: http://www.sun.ac.za/logistics
TRANSPORT ECONOMICS POSTGRADUATE MODULES OFFERED DURING 2015
Module
number
Module
Code
Lecturer
Credits
First semester
4
10
11
13
17
34
Economic investment planning [TP]
Introduction to optimisation [LM]
Introduction to forecasting [LM]
Competition and regulation [TE]
Road transport management [TE]
Shipping Economics [TE]
10904 712
10909 722
10911 723
59102 715
59145 744
12995 773
Prof WJ Pienaar
Dr CG Jacobs
Prof JH Nel
Prof WJ Pienaar
Mr RA Janse van Rensburg
Mr JS Spamer
15
15
15
15
15
15
11275 742
59153 742
10933 853
13076 744
Mr Corné de Waal
Prof SC Krygsman
Prof JH Nel
Mr JS Spamer
15
15
15
15
Second semester
8
21
25
33
Air Transport Economics [TP]
Urban transport economics [TP]
Forecasting [OR] [Only MCom]
International Trade Transport Infrastructure and Logistics
[TE]
36
CAPITA SELECTA ( Spatial accessibility and transport
64017 744
Prof T de Jong, Prof SC
15
nd
network analysis) (2 SEMESTER TRANSPORT ECONOMICS)
Krygsman & Ms J Thiart
[TE]
40
Advanced economic and financial planning for transport
13079 844
Prof S Krygsman
15
projects [TE] [Only MCom]
Pass Prerequisite:
Research Seminar, first and second semester:
Module 11 or 3 is a pass prerequisite for Module 25
Transport Economics
BComHons
11047 775
TE
MCom
90
150
180
11245 872
11245 874
11245 828
POST GRADUATE PROGRAMME IN TRANSPORT ECONOMICS
BComHons (Transport Economics 21008 778)
Compulsory modules
Code
59102
10904
10911
11047
Module
715
712
723
775
Credits
15
15
15
30
59153
742
15
Elective modules (at least 30 credits)
Code Module Credits
64017
744
15
Module Name
Competition and Regulation
Economic investment planning
Introductory forecasting
Research Assignment: Transport
Economics
Urban Transport Economics
Semester
1
1
1
Both
2
Module Name
Semester
Capita Selecta (Transport
2
Economics)
13076
744
15
International Trade Transport
2
Infrastructure and Logistics
10909
722
15
Introductory optimisation
1
11275
742
15
Air Transport Economics
2
59145
744
15
Road Transport Management
1
12995
773
15
Shipping Economics
1
Note: A maximum of 30 credits may be obtained from a related and approved field of study.
MCom (Transport Economics Coursework- and Thesis option 21008 899)
For Coursework and thesis option (899), one of the following must be selected:
Code Module Credits Module Name
11245
872
90
Thesis: Transport Economics
11245
874
150
Thesis: Transport Economics
Elective Modules
Together with the thesis, a total of at least 180 credits.
Code Module Credits Module Name
64017
814
15
Capita Selecta (Transport
Economics)
64017
844
15
Capita Selecta (Transport
Economics)
13079
844
15
Advanced Economic and Financial
Planning for Transport Projects
10933
853
15
Forecasting
Note: A maximum of 60 credits may be obtained from the Honours programme
Semester
Both
Both
Semester
1
2
2
2
MCom (Transport Economics Full Thesis 21008 879)
Selection modules may also be taken out of the BComHons programme
Compulsory modules for the Full Thesis option (879)
Code
11245
Module
828
Credits
180
Module Name
Thesis: Transport Economics
Semester
Both
MODULE 4
10904 712 ECONOMIC INVESTMENT PLANNING
Course objective
With their investment in transport infrastructure, governments are invariably confronted with a complex and
multi-faceted economic problem. Firstly, there is the scarcity aspect: a multitude of (and often very extensive)
transport needs have to be met with limited means. Secondly, there is a problem of choice: a choice must be
made between different forms and modes of transport in order to maximise social utility. Thirdly, maximum
satisfaction of needs depends on effective transport activities and infrastructure. In this module the supporting
economic theory and evaluation methods are discussed and applied to equip prospective transport
economists with the ability to contribute towards alleviating the above-mentioned problem. (The content of
the module is road transport oriented.)
Course content
A: Road economics






Road user costs
Road supply costs and financing
Road cost responsibility
Cost recovery methods
Road user benefits, non-road user benefits and external costs
Multiplier analysis
B: Economic evaluation and selection of government transport projects







Benefit-cost analysis (theory and application)
Discounted cash flow techniques
Derivation of the social discount rate
Opportunity cost and shadow pricing
Project selection
Strategies to promote either economic efficiency or social equity
Timing of project implementation
Remarks
1.
2.
3.
4.
The module is presented during the first semester.
The module counts 15 credits.
The module is compulsory for the honours program in Transport Economics.
Transport Economics 318, 348 is a pass prerequisite for this module.
MODULE 8
11275 742 AIR TRANSPORT ECONOMICS
Course objective
The air transport industry is complex and dynamic and subject to rapid change and innovation. With the
introduction of deregulation it has become imperative to take cognisance of new business practices and
management concepts. The module will, firstly, provide a basis for the student to enter the air transport
industry at (junior) management level, and secondly to introduce students to managerial strategies used in
competitive industries within and outside of air transport.
Course content
1.
2.
3.
4.
5.
6.
7.
8.
9.
Economics and strategy in aviation, with reference to the role of aviation in the value chain.
Air traffic and the role of demand, market segmentation and demand forecasting.
Yield in aviation – the aspect of pricing, market segmentation and tariff structures that impact yield.
Output in aviation – determinants of output and restraints on utilization and capacity management
options.
Unit costs in aviation – determining and management of cost.
Capacity management – decisions on design of networks, markets, routes, hub-and-spoke systems,
alliances and the influence of scheduling on air transport cost.
Fleet management – aircraft acquisition and financing tactical utilization of aircraft capacity.
Revenue management – function of revenue management, actions taken and various approaches
used.
Operating performance – relationship between unit costs, unit revenue, yield and load factors.
Remarks
1.
2.
3.
This module is offered during the second semester.
This module counts 15 credits.
Transport Economics 318 and 348 are pass prerequisites for this module.
MODULE 13
59102 715 COMPETITION AND REGULATION
Course objective
Although the South African economy is largely based on free market principles, and most government
transport enterprises have either been corporatised or privatised, there is still a need to economically regulate
certain aspects which relate to the supply of transport services. The module strives towards making students
confident in working with the economic principles of transport regulation, transport pricing, transport
competition and government transport policy. Thorough knowledge of these aspects, and the insight to
execute transport policy and regulations judiciously, should contribute towards the transport industry
supporting the national economy most effectively.
Course content
1.
2.
3.
4.
5.
6.
7.
8.
9.
Economic principles of regulation and coordination
Market characteristics and phenomena: market forms and market contestability, modal cost
structures, horizontal and vertical integration and opportunities for the attainment of economies of
scale, long-haul, scope and density
Market failures, limitations and problems: public goods externalities, the so-called natural monopoly,
incomplete/insufficient user perception, indivisibilities and predatory pricing
Regulatory failures, limitations and problems; deregulation, corporatisation and privatisation; and
self-regulation
Control of market entry
Principles of price regulation and concomitant problems with respect to: operating expenses, service
quality, capital investment, return on capital, depreciation and measures of effectiveness
Price-fixing under conditions of regulation: marginal cost pricing (short and long run), price
discrimination, the treatment of common and joint costs and the influence of varying demand on
price-fixing
The place and role of the common carrier in developing and industrial economies, and the
vulnerability of the common carrier to ruinous competition and cream skimming
The determinants, goals and objectives of government transport policy
Remarks
1.
2.
3.
4.
The module is presented during the first semester.
The module counts 15 credits.
This module is compulsory for students following the honours program in Transport Economics.
Transport Economics 318, 348 or Economics 318, 348 is a pass prerequisite for this module.
MODULE 17
59145 744 ROAD TRANSPORT MANAGEMENT
Course objective
The road transport industry is highly competitive. Therefore it is imperative to have a thorough understanding
of the appropriate management aspects in transport operations. In this module a selection of topics relevant
to strategic, tactical and operations management are covered which are essential for successfully running a
road transport firm.
Course content
1.
2.
3.
4.
5.
The role of road freight transport in the logistical chain
Detailed vehicle costing and control
Financial aspects of vehicle purchasing, management and replacement
Client service and marketing of the transport product
Analysis of current road transport legislation
Remarks
1.
2.
3.
This module is offered during the first semester.
This module counts 15 credits.
Logistics Management 244 and/or Transport Economics 318 and 348 is a pass prerequisite for this
module.
MODULE 21
59153 742 URBAN TRANSPORT ECONOMICS
Course objective
The South African economy is largely dependent on the production of goods and services, and commercial
activities in the metropolitan areas. These activities cannot be efficiently carried out without an effective
urban transport system. In this module the economic aspects of urban transport are explained and analysed.
The knowledge thus obtained is important for urban planners, administrators, transport economists and a
career in applied economics.
Course content
1.
2.
3.
4.
5.
6.
7.
The relationship between urban land use and transport provision
The urban transport problem and proposed solutions
The urban transport planning process
Urban transport systems and technology
The urban transport investment decision
Pricing and subsidies
Urban transport policy and legislation in South Africa
Remarks
1.
2.
3.
4.
The module is presented during the second semester.
The module counts 15 credits.
This module is compulsory for students following the honours program in Transport Economics.
Transport Economics 318, 348 is pass prerequisite for this module.
MODULE 33
13076 744
INTERNATIONAL TRADE TRANSPORT INFRASTRUCTURE AND LOGISTICS
Course objective
International trade, transport infrastructure and logistics support global value chains (GVCs) in connecting
countries and enhancing economic interaction by spreading goods, people and technology across the globe.
The course will focus on the transport and logistics GVCs which are extending their reach into developing
countries with the emphasis on trading, transport infrastructure and international logistics.
Course content
1.
2.
3.
4.
5.
6.
Understanding Global Value Chains (GVCs)
International trade (trading terms, transactions, security & risk management)
Global Trade Scene (regional trade integration & trade barriers)
Transport infrastructure
Inland Shipping (landlocked countries & hinterland logistics)
International Logistics Practises (case studies)
Remarks
1.
2.
3.
This module is presented during the second semester.
The module counts 15 credits.
There are no prerequisite courses for this module.
MODULE 34
12995 773
SHIPPING ECONOMICS
Course Objectives
Almost 90 per cent of the volume of international trade is seaborne. The globalisation of economic activities
has led to fierce competition, resulting in lower freight rates to which the shipping business has had to adapt.
This module focuses on the demand for shipping, with specific reference to South African imports and exports,
as well as on the supply of shipping and the changes in the behaviour of shipping markets.
Course content
1.
2.
3.
4.
5.
6.
7.
The main features of the ship
Ship design, construction & operation
Types of ships around the globe (cargoes, trades and future trends)
Maritime canals, inland waterways & sea ports
Liner conferences & charter parties
Containerisation
Ship financing, management & governance
Remarks
1.
2.
3.
This module is presented during the first semester.
The module counts 15 credits.
Transport Economics 318 and 348 are pass prerequisites for this module
MODULE 36
CAPITA SELECTA
64017 744 SPATIAL ACCESSIBILITY AND TRANSPORT NETWORK ANALYSIS
Course objective
Service provision, including the location of facilities and extension of transport network infrastructure are
major issues for the both the public sector policy formulation and private sector management environment.
Spatial efficiency and spatial equality with regard to the location of transport networks and facilities (hospitals,
schools, community centres, etc.) are important factors to be considered in public policy such as land use
planning and network expansion. The same factors also influence decisions by the private sector concerning
the service market and operational management environment. This module will, among others, deal with
these factors with the point of departure being accessibility offered by transport networks.
Focus will be placed on the practical use of Geographic Information Systems (GIS) and GIS based expert
systems to do applied assignments. For these assignments use will be made of mostly South African data and
applications. No prior knowledge of GIS is required. Depending on the number of students, assignments may
be done in groups of no more than two students. The course is important for all researchers that have to do
with flow/interaction and facility planning in the public and private sector.
Course content
1.
2.
3.
4.
5.
6.
7.
GIS and Thematic map making.
Discussion of relevant concepts like spatial efficiency, spatial equality, accessibility statistics,
satisfactory solution, optimal solutions, etc.
Spatial Interaction, transport networks and "shortest path" analysis.
Predicting spatial interaction with gravity modelling.
Service centre location models and public sector application.
Trade area analysis and private sector applications.
Project
Remarks
1.
2.
3.
The module is presented during the second semester.
The module counts 15 credits.
There are no prerequisite courses for this for this module
MODULE 40
13079 844
ADVANCED ECONOMIC AND FINANCIAL PLANNING FOR TRANSPORT PROJECTS
Course objective
In this module transport infrastructure in economic development will be analysed. Different evaluation
technique will be applied. The nature of transport infrastructure, such as type of ownership, funding and
marketing structure will be investigated. A comprehensive economic and financial evaluation of transport
projects, with regards to project infrastructure, risks, methods of capital funding, demand and market
imperfections will be required.
Course content
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Introduction: The importance of Transport Infrastructure
Basic principles
Commercial and social approaches to investment
 Financial Appraisal
 The Benefit-Cost approach
Comparability between Appraisal Techniques
Measuring the Costs of Transport Investment Projects
Measurements of Benefits From Transport Investment Projects: Computational Issues
Risk and Uncertainty in Transport Project Evaluation
Financing Transport Investment Projects
Transport improvements and Equity
Environmental and Safety Externalities
Assessing the effect on National Income
Institutional and Policy Considerations
Remarks
1.
2.
3.
The module is presented during the second semester.
The module counts 15 credits.
The module is offered residentially only.